Loans and High Yield

Chinese property borrowers are increasingly taking a strategic approach to managing their liabilities by tendering old notes when new bonds are announced. The trend has taken off this year, and is set to be the norm as issuers become more proactive in tackling their refinancing needs sooner rather than later. Morgan Davis reports.

A handful of borrowers have been forced to close smaller loans than expected recently amid waning interest from lenders. While bankers insist there is still plenty of liquidity, debut credits and infrequent borrowers are feeling the pinch in the pandemic. Pan Yue reports.

A flurry of Chinese corporations rushed to the dollar bond market on Wednesday, raising a total of $1.19bn between them.

UK pub chain and brewer Marston’s asked some of its noteholders for fresh covenant waivers on Wednesday, as a measure to help mitigate the impact of a second lockdown.

AllianceBernstein has launched a €1.2bn European real estate debt fund alongside Lacarne Capital, in the hope of exploiting a moment where the sector’s traditional sources of funding may be less forthcoming.

Singapore-based FKS Food & Agriculture has closed a $255m-equivalent dual currency deal with eight lenders.

Redco Properties Group has tackled some of its upcoming maturities by selling a new $266m bond to refinance debt.

ARA Asset Management and property company Chelsfield have raised a S$385.8m ($286m) green loan to finance the acquisition and renovation of 5One Central, a commercial building in Singapore.

UK chancellor Rishi Sunak’s announcement that large UK companies, whether listed or private, would need to make climate-related disclosures, was a step towards an important principle — that corporate transparency is a public good, and should be driven by governments, not listing authorities.

Market euphoria following news of Pfizer’s potential Covid-19 vaccine has helped underwriting banks dodge a likely loss on one of the hardest bridge loans to shift all year, with the bond now guided six points higher than at launch and nearly three times covered.

Sterling supply in high yield and leveraged loans has proved a rare sight since the 2016 Brexit vote, with UK-based borrowers preferring to seek euro funding where possible. But this week has brought a relative bonanza — three deals — in the currency.

Three Chinese property companies launched dollar bonds on Monday, continuing to take advantage of the post-US election momentum.